·
·
Structured Settlements
may be made as a lump sum or over a period of time in parts decided by both the
parties which may or may not be subject to conditions agreed upon by the
parties.
·
A Structured Settlement
annuity can be simply put forth as the payment of compensation over a period of
time. It is also seen frequently that the parties which are at fault pay out
the compensation over a time period in equal parts by employing the services of
an insurance company. This is also beneficial as there is proof for the
transaction being made.
Certain cases
where we can use structured settlements are!
·
Individual Injury –
cases where an aggrieved party seeks remuneration or compensation for the
wrongs done to him/her. The claim is submitted by the party aggrieved and a
compensation is received on account of the wrongful incident.
·
Compensation for
workers – The perfect example of such can be given when there are scarce
amounts of funds for a labourer when he/she is temporarily incapable of working
and earning to pay for his/her treatment and hence the company employing them
pays up. This of course happens only in cases where the employee is harmed while
on duty.
·
Hospital malpractice –
In a country like India we can always expect negligence and where it is legally
recognised as a criminal act and penalties and compensations already decided
for, the payments shall be claimed by the patient or the kin of patient in the
event of wrongful actions carried out by the hospital.
·
Wrongful Death – In the
event of a calamity like hurricanes or floods the government shall provide
remuneration to the injured or the kin of the dead to ensure treatment of the
injuries or survival of the families in the event of death or injury.
But, there are
also some pros and cons of structured settlements that arise!
·
Pro – The advantage of
having structured Settlements is that wronged parties can avail the conviction
of instalments over time period that has been agreed upon by both the parties
after a proper discussion.
·
Con – After the payment
has been made, in case of future financial emergencies caused by the events of
the wrongful incident, one cannot seek further remuneration as it shall be
termed as exploitation or extortion.
